Apparently, news of Yale University’s Endowment Fund investment in cryptocurrency funds was a significant catalyst. As we previously reported, Yale University controls the second-largest university endowment in the world. It allocated assets into two cryptocurrency funds operated by Andreessen Horowitz and Paradigm.
Top Ivy League Schools Investing in Funds
Now, reportedly, other Ivy League schools are turning to funds, as well.
According to reports, several top Ivy League Schools made investments into at least one cryptocurrency fund. These schools include Harvard University, Stanford University, Dartmouth College, Massachusetts Institute of Technology, and the University of North Carolina.
Beforehand, many were reluctant to invest due of a lack of knowledge.
The News could Open the Floodgates
Such an endorsement of assets is significant. Furthermore, top money managers in the world invest in cryptocurrency. This fact may just open the floodgates.
“A move by endowments into funds that will directly bet on cryptocurrencies signals a major shift in investor sentiment toward the asset class, in the same way that institutions over the past decade became more willing to invest in private tech companies,” says The Information. “Backing from such closely watched institutions could help validate cryptocurrencies, which are still considered too risky by many institutional investors.”
Fear of Missing Out (FOMO)
Of course, that raises the question – does FOMO (fear of missing out) actually exist?
“That fear drives a lot of investment booms, and nobody knows that better than the biggest stewards of institutional money: hedge funds,” notes The New York Times.
While some would argue we’re not at a tipping point just yet on FOMO, new interest from the nation’s top schools may change that.
Long before these institutions began to invest in cryptocurrencies, Michael Novogratz, noted that a number of institutions would fuel the next Bitcoin bull market. Now that this has happened, we may begin to see much greater interest.
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